Investing in All of America Act of 2025
Summary
The "Investing in All of America Act of 2025" amends the Small Business Investment Act of 1958. It aims to increase investment in smaller enterprises located in rural or low-income areas, as well as small businesses in critical technology areas. The Act modifies leverage limits for Small Business Investment Companies (SBICs).
Expected Effects
The Act will likely lead to increased capital availability for small businesses in targeted areas. It adjusts the maximum leverage exclusion for SBICs, potentially stimulating economic activity in underserved regions and critical technology sectors. This could foster innovation and job creation.
Potential Benefits
- Increased investment in rural and low-income areas.
- Support for small businesses in critical technology areas.
- Greater access to capital for small manufacturers.
- Potential for job creation and economic growth in targeted sectors.
- Modernization of SBIC leverage rules.
Potential Disadvantages
- Potential for increased risk-taking by SBICs due to higher leverage.
- Possible unintended consequences from altered leverage calculations.
- Complexity in administering the new leverage exclusion rules.
- Risk of funds being diverted from other small business sectors.
- The exclusion of funds from government entities could limit some investment opportunities.
Constitutional Alignment
The Act aligns with the Constitution's mandate to "promote the general Welfare" (Preamble) by aiming to stimulate economic activity and create jobs. Congress's authority to regulate commerce (Article I, Section 8) provides a basis for this legislation, as it pertains to interstate economic activity and investment.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).